Sell A Put And Buy A Put Today

: This is a bearish strategy. You pay a fee (premium) for the right to sell a stock at a specific price (strike price). Goal : Profit from a significant drop in the stock price. Max Risk : Limited to the premium paid.

: Substantial; you could be forced to buy a stock that has fallen significantly. Combining Them: The Put Spread sell a put and buy a put

A "Put Spread" involves simultaneously buying and selling puts on the same stock with the same expiration date but different strike prices. This is a "risk-defined" trade. Put Option Explained - TD Bank : This is a bearish strategy